The Jenuwine Cigar Lounge, 27754 Woodward, got approval from the City Commission Monday to transfer a Class C Liquor License from Troy to the cigar lounge.

Owner Daniel Jenuwine also owns a cigar retail business in Troy and a cigar lounge in Sterling Heights that sells alcohol.

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Jenuwine has a cigar bar exemption from the Michigan Department of Community Health and told commissioners there are only seven such exemptions that have been issued in the state.

“This is a new business model of cigar bars,” Jenuwine said. “It’s a unique breed.”

Commissioner Sharlan Douglas wondered if the city should approve Jenuwine’s request because the city’s Downtown Task Force recently recommended amending the city’s liquor license policies to limit new bars.

However, Mayor Jim Ellison said future city liquor license policy amendments concern the downtown district, not the Woodward Avenue area where Jenuwine’s cigar lounge is located. The downtown has enough Class C liquor licensed establishments, he said.

“This is a unique concept,” said City Commissioner Jeremy Mahrle. “I think it’s adding value” to the city.

Jenuwine said he has no plans to open a full scale bar at the Royal Oak location.

“A cigar bar is much different than a regular bar,” he said. “I’m not in the bar business, I’m in the cigar business.”

Planned hours of operation are 9 a.m. to 11 p.m. Monday through Wednesday, 9 a.m. to midnight Thursday through Saturday, and 11 a.m. to 8 p.m. on Sundays.

The average customer at Jenuwine’s cigar lounge in Sterling Heights consumes 1.9 drinks per visit, he said.

Sterling Heights police reported that they have had no problems or calls for police at the cigar bar Jenuwine owns in Sterling Heights, said Royal Oak police Lt. Mike Frazier.

The Royal Oak Police Department did object to transferring a liquor license into the city because Royal Oak already has five licenses in escrow for purchase from the current license holders.

Kelly Allen, Jenuwine’s attorney, said the price of current escrowed licenses available for him to purchase are about $250,000, which is far too high a price for his cigar lounge. The owner expects to make about 70 percent of his money on cigar sales, 28 percent on alcohol and 2 percent on prepackaged snacks like chips and flavored popcorn.

“He is not looking to compete with bars and restaurants,” Allen told city commissioners, adding that Jenuwine will sign an agreement with the city to never transfer his liquor license to any other location in Royal Oak.

Jenuwine is buying a Class C Liquor License for $52,000 and will spend about $150,000 buying alcohol inventory and remodeling his cigar store.

Jenuwine’s cigar store currently has table seating for 18 people and he plans to increase seating to handle 74 patrons.

The Royal Oak Planning Commission will have to first approve parking and other requirements for the cigar bar before it can open.